Wellbore Integrity Solutions Service Quality Severity Matrix (External/Internal)

Severity Insignificant (I) Light (L) Serious (S) Major (M) Catastrophic (C )
Customer + WIS + None <$10K >$10K to <$100K >$100K to <$1M >$1M
3rd Party Loss None NPT<4hrs NPT>4hrs to <24hrs NPT>24hrs to <48hrs NPT>48hrs
▪ Wrong/late delivery of service/product causing
▪ Wrong/late equipment delivered causing client ▪ Wrong equipment shipped from base to wellsite ▪ Wrong/late delivery of service/product causing
replacement by competitor or
inconvienence ▪ Late equipment delivered causing operational replacement by competitor and/or loss of future
loss of future work (e.g., twist-off, back off, run out
Product Delivery or ▪ No replacement/backup available delay and client dissatisfaction work
of tool specifications)
Service Failure ▪ Service/Product delivery failure ▪ Service/Product delivery failure ▪ Service/Product delivery failure
▪ Service/Product delivery failure
------------- ------------- -------------
-------------
Resulting in $ impact or NPT as listed above Resulting in $ impact or NPT as listed above Resulting in $ impact or NPT as listed above
Resulting in $ impact or NPT as listed above
▪ Multiple Serious non-conformances for same client ▪ Multiple Major non-conformances for same client
Multiple Service on same well, campaign, or project within 30 days on same well, campaign, or project within 30 days
Quality Incidents on Applies as follows: Applies as follows:
the Same Job Severity of 2nd and subsequent non-conformances Severity of 2nd and subsequent non-conformances
(WIS-related) will be elevated by at least 1 level higher than 1st will be elevated by at least 1 level higher than 1st
non-conformance non-conformance
▪ Formal written letter of complaint by the client to ▪ Formal written letter of complaint by the client to
▪ Customer verbal complaint against field ▪ Customer email complaint to Field Service Operations Manager Operations Manager
Client Feedback / execution/services Manager against field execution/services ▪ Formal written letter against field ▪ Formal written letter against field
Hazard ID/Observation or Near Miss (No Losses)

Customer Satisfaction ------------- ------------- execution/services execution/services

Report Resulting in no impact to customer schedule or $ or Resulting in impact to customer schedule or $ or ------------- -------------
NPT as listed above NPT as listed above Resulting in service replacement by competitor or Resulting in service replacement by competitor or
impact to $ or NPT as listed above impact to $ or NPT as listed above
▪ Calibration of shop measuring tools/devices out of ▪ Repeated incidents reported of calibration of shop
▪ Calibration of shop measuring tools/devices out of
date (e.g., BOM, IMTE, gauges, inspection) identified measuring tools/devices out of date (e.g., BOM,
date (e.g., BOM, IMTE, gauges, inspection)
Repair and as the root cause of the Quality-related non- IMTE, gauges, inspection) identified as the root
-------------
Maintenance conformance cause of the Quality-related non-conformance
Resulting in or having potential to cause Quality-
------------- -------------
related non-conformance
Resulting in $ impact or NPT as listed above Resulting in $ impact or NPT as listed above

▪ Bid deadline missed (>$1M to <$5M)

▪ Bid deadline missed (<$1M)
▪ Invoice not in compliance with contract resulting in ▪ Invoice not in compliance with contract resulting in ▪ Contract financial net results worse than expected
▪ New invoice issued
partial payment dispute and partial non-payment by $1M
▪ Invoice not in compliance with contract resulting in
▪ New invoice issued for the same ▪ Repeated/multiple invoices issued for the same ▪ Incorrect invoicing resulting in dispute and total or
Sales and Invoicing rejection of payment
▪ DSO impairement by >5days customer substantial partial non-payment of invoice
▪ DSO impairment by >30days
(impairment means additional days above DSO ▪ DSO impairment by >45days and partial write-off ▪ Negotiations of dispute result in non-payment of
(impairment means additional days above DSO
target) (impairment means additional days above DSO disputed part and total write-off >$1M
target)
target)
Inventory, equipment, or personnel shortages Inventory, equipment, or personnel shortages
Incomplete, wrong, or inadequate Inventory, equipment, or personnel shortages
causing loss of revenue and job delay causing loss of revenue and job delay
Job Resources and equipment/materials sent from WIS even if no causing loss of revenue and job delay
------------- -------------
Field Logistics impact to client schedule, or -------------
Resulting in $ impact or NPT as listed above or by Resulting in $ impact or NPT as listed above or loss
resulting in $ impact or NPT as listed above Resulting in $ impact or NPT as listed above
replacement by a competitor for the job of contract
Asset Management -
Full physical count gross discrepancy value >(+)$10K Full physical count gross discrepancy value Full physical count gross discrepancy value Full physical count gross discrepancy value
Assets, Inventory,
to <$100K >(+)$100K to <$250K >(+)$250K to <$500K >(+)$500K
M&S Physical Count
Asset Management -
Inventory cycle count gross discrepancy value >0.5% Inventory cycle count gross discrepancy value >1% Inventory cycle count gross discrepancy value >3%
Inventory and M&S Inventory cycle count gross discrepancy value >5%
to <1% to <3% to <5%
Cycle Count